Cost Accountants urges FM to allow appearance before Tribunals [Read Letter]

ICOAI - Changed - Madras - HC - Taxscan

The Institute of Cost Accountants of India has urged the Finance Minister to include “Cost Accountants” under the definition of “Accountant” under section 288 (2) of Income Tax Act, 1961. In a letter to the Finance Minister last week, the ICMAI has submitted suggestions and submissions for upcoming New Direct Tax Law.

As per section 288 of the Act, authorized representatives can appear before the Income Tax authorities or the Appellate Tribunal with respect to any proceeding under the Act except when summoned personally u/s 131.

Under the existing provisions, inter alia, chartered accountants in practice are authorized to represent assessees as above.

“This Suggestions on the new Direct Tax Law and submissions on “inclusion of Cost Accountants” under the definition of Accountants u/s 288 (2) of the Income Tax Act, 1961 have been drafted after seeking note-worthy suggestions from its member and Resource Persons, who are working in the Industry and in practice. The opinion of taxpayers also sought while drafting the suggestions and submissions”, Institute said.

Earlier, the Advocates have objected the appearance by chartered accountants before tax authorities. When the matter travelled to the Supreme Court, the Apex Court observed that Chartered Accountants and Company Secretaries would at best be specialists in understanding and explaining issues pertaining to accounts and Section 13(1) of NTT Act, insofar as it allowed Chartered Accountants to represent a party to an appeal before the NTT, was held to be an unconstitutional and unsustainable in law.

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